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A rent roll is a document that lists all the units in a rental property along with their current tenants, lease terms, and rental rates. It gives the lender a snapshot of the property's current income. While not always required for single-family DSCR loans, a rent roll becomes increasingly important for multi-unit properties and can support your application even on single-family deals.

What Information a Rent Roll Includes

A standard rent roll includes: unit number or address, tenant name, lease start and end dates, monthly rent amount, security deposit held, and current occupancy status. For multi-unit properties, it lists every unit individually so the lender can see the total income picture. Some lenders also want to see any additional income like parking fees, pet rent, laundry revenue, or storage fees. The rent roll should be current as of the date of the loan application.

When a Rent Roll Is Required

For single-family properties, a rent roll is often not formally required because the DSCR is calculated using the appraised market rent rather than actual rent. However, providing a signed lease agreement or rent roll can strengthen your application, especially if the actual rent exceeds the appraised market rent. For 2-4 unit properties, most DSCR lenders require a rent roll to see income from each unit. For 5+ unit properties, a rent roll is always required and is a core underwriting document.

Vacant Properties and Market Rent

If the property is vacant at the time of the loan application, the DSCR is calculated using the appraised market rent from the Form 1007 rental analysis. You do not need existing tenants to qualify for a DSCR loan. The appraiser determines what the property should rent for based on comparable rentals in the area. This means you can purchase a vacant property, close with a DSCR loan, and then find tenants after closing. Many investors prefer this approach so they can renovate or prepare the property before leasing.

How Lenders Verify Rental Income

Lenders verify rental income through several methods: the appraisal with market rent analysis (Form 1007), existing lease agreements, bank statements showing rental deposits, and property management statements. For the DSCR calculation, most lenders use the market rent from the appraisal, but existing leases that show higher rents can sometimes be used if the lender allows it. Consistency between the rent roll, lease agreements, and bank statements builds confidence in the income figure.

Below-Market Rent and Its Impact

If your property is currently rented below market rate - perhaps to a long-term tenant with an older lease - the appraised market rent may actually be higher than your current rent. In this case, the DSCR calculation using market rent works in your favor. Conversely, if you have an above-market lease (perhaps in a hot rental market), the lender may still use the lower appraised market rent for the DSCR. Understanding this distinction helps you set realistic expectations.

Tips for a Strong Rent Roll

Keep your rent roll up to date and accurate. Include signed leases for all occupied units. If rents have recently increased, provide documentation of the new rates. For multi-unit properties, fill vacancies before applying if possible - higher occupancy strengthens your application. If you have month-to-month tenants, note that on the rent roll. Lenders prefer signed leases with remaining terms over month-to-month arrangements, but both are acceptable.

Check Your DSCR Today

Whether your property is fully leased, partially occupied, or completely vacant, DSCR Direct can show you what rates are available. Enter your scenario at dscrdirect.net to see results from hundreds of lenders instantly. For questions about rent rolls or income documentation, contact info@dscrdirect.net.